Coupang's Sales Jump 20%... Bom Kim Says "AI Is Core to Coupang, Investment to Expand"

Revenue Reaches 11.9763 Trillion Won, Operating Profit at 209.3 Billion Won
"Innovating Customer Experience and Enhancing Operational Efficiency Through AI and Automation Investment"
Taiwan Expected to Achieve Triple-Digit Growth Rate in Q3
"Growth Trajectory Similar to Early Days in Korea"
Accelerating Global Expansion with Increased Investment in Taiwan

Bom Kim, Chairman and Founder of Coupang Inc., stated on August 6, "Coupang's artificial intelligence (AI) is a long-term driver of both revenue growth and margin expansion."

During Coupang's Q2 earnings conference call that day, Kim said, "AI has been at the core of Coupang's operations for years, and by leveraging this technology, we have improved every aspect of the customer experience, including personalized recommendations, inventory forecasting, and route optimization." He added that Coupang plans to expand investments in AI automation facilities to enhance the level of Rocket Delivery service and enjoy cost-saving effects.

Coupang Inc., the parent company of Coupang, announced that its second-quarter revenue reached 11.9763 trillion won (8.524 billion dollars, based on an average quarterly exchange rate of 1,405.02 won per dollar), representing a 19% increase year-on-year. Operating profit was 209.3 billion won (149 million dollars), turning a profit compared to an operating loss of 34.2 billion won in the previous year.

Kim assessed, "By improving product selection, pricing, and service, we are strengthening customer engagement and reducing costs, creating a 'virtuous cycle of value' for customers, sellers, and brands."

Increased Customer Engagement Through Investment in Customer Experience... "Further Investment in AI and Automation"

On this day, Kim explained that investments in customer experience in the Product Commerce (Rocket Delivery, Rocket Fresh, Rocket Growth, and Marketplace divisions) business have led to increased customer engagement, which enabled Coupang to maintain revenue growth higher than the growth rate of the Korean retail market.

The Product Commerce division recorded revenue of 10.3044 trillion won (7.334 billion dollars), up 17% from the same period last year. The number of active customers?those who purchased Coupang products at least once during the second quarter?was 23.9 million, a 10% increase compared to 21.7 million in the same period last year.

Kim said, "We continue to redefine expectations for delivery speed, and in the second quarter, we added 500,000 new products to Rocket Delivery. As a result, the volume of same-day and dawn delivery orders increased by more than 40% year-on-year, and purchases were made across more categories."

He particularly emphasized the importance of the fresh food category. The growth rate in the fresh food segment alone approached 25% year-on-year. Kim explained that the sharp increase in customers and spending for fresh food was due to the significant expansion of offerings in produce, meat, and seafood.

Furthermore, Kim stressed that Coupang would invest more in AI and automation to innovate the customer experience and enhance operational excellence. He said, "This is a significant opportunity to improve service levels while achieving cost savings, and it will serve as a long-term driver for revenue growth and margin expansion. We expect AI to transform Coupang's operations, including automation and the enhancement of humanoid robots."

"Taiwan Grows 33% in Q3... Similar Pace to Early Days in Korea"

Kim continued to express optimism about the Taiwan business in the second quarter, following the first quarter of this year. The Growth Business division, which includes the performance of Taiwan, Farfetch, and Coupang Eats, posted revenue of 1.6719 trillion won (1.19 billion dollars), up 33% year-on-year. Specific separate results for the Taiwan business division were not disclosed.

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Kim said, "The growth business portfolio will create significant market opportunities and generate meaningful cash flow over the next few years, with Taiwan's Rocket Delivery being a prime example."

Kim further evaluated that Taiwan is growing faster and more robustly than the optimistic projections. He said, "Second-quarter revenue this year recorded a triple-digit growth rate compared to the second quarter of last year and grew by 54% compared to the previous first quarter. We expect the growth rate in the third quarter to be even higher."

Kim also pointed out the importance of the increasing number of repeat customers in the Taiwan market. He said, "While new customers contribute to growth and active customers increased by nearly 40% compared to the previous quarter, this quarter's revenue growth was driven by increased spending from existing customers. Taiwan is showing a trajectory similar to the early years when we began expanding retail services in Korea, which strengthens our confidence in its long-term growth potential."

On this day, Coupang raised its loss forecast for the Growth Business division. EBITDA (earnings before interest, taxes, depreciation, and amortization) for the Growth Business was -330.1 billion won, with the deficit widening compared to -274 billion won last year. With the potential of the Taiwan business improving rapidly, Coupang expects annual EBITDA to approach approximately 1.3 trillion won (900 to 950 million dollars).

This content was produced with the assistance of AI translation services.